1-(β-D-glucopyranosyl)-4-methyl-3-[5-(4-fluorophenyl)-2-thienylmethyl]benzene, hemihydrate also known as Canagliflozin, belongs to a novel therapeutic class of sodium-glucose co-transporter 2 inhibitors. US drug regulatory approval was received in March 2013 (INVOKANA™) for Canagliflozin as an adjunct to diet and exercise to improve glycemic control in adults with type-2 diabetes mellitus, where it is represented by the following general formula (I):

U.S. Pat. No. 7,943,788 B2 first discloses Canagliflozin and its process for the preparation thereof, by reacting 2-(4-fluorophenyl)thiophene (II) is condensed with 5-bromo-2-methylbenzoic acid (III) to produce (5-bromo-2-methylphenyl)[5-(4-fluorophenyl)thiophen-2-yl)methanone of formula (IV), which is reduced to produce 2-(5-bromo-2-methylbenzyl)-5-(4-fluorophenyl)thiophene (V), further condensed with 2,3,4,6-tetrakis-O-trimethylsilyl-D-gluconolactone (VI) in presence of base to produce α-D-glucopyranose, 1-C-[3-[[5-(4-fluorophenyl)-2-thienyl] methyl]-4-methylphenyl]-2,3,4,6-tetrakis-O-(trimethylsilyl)- of formula (VII). The compound of formula (VII) is deprotected in presence of acid and further reduced to produce Canagliflozin.

CN 103980263 discloses a process for the preparation of Canagliflozin of formula (I), by reacting 2-methylbenzoic acid (IX) with iodine in presence of Fe2O3/HIO4 to produce 5-iodo-2-methylbenzoic acid (X), the compound of formula (X) is converted acid chloride of formula (XI) in presence of thionyl chloride, the compound of formula (IX) is condensed with 2-(p-fluoro phenyl)-thiophene (II) to produce-(5-Iodo-2-methylbenzyl)-5-(4-fluorophenyl)thiophene (XII), followed by condensation with formula (XIII) to produce the compound of formula (XIV), deprotection of compound of formula (XIV) to produce Canagliflozin (I).

WO 2013/068850 discloses redox economic processes for preparing C-arylglucosides that can be useful as drugs, including SGLT2 inhibitors, prodrugs or synthetic building blocks. The particular focus of the present process for, but not limited to, the manufacture of SGLT2 inhibitors. The glucoside may be in the D- or L-configuration.
WO 2013/064909 A3 discloses a novel crystalline complexes and amorphous forms of SGLT2 inhibitors, and processes for the preparation of these forms. These crystalline complexes of SGLT2 inhibitors are designated as forms CS1, CS2, CS3, CS4 and CS5.
The major disadvantage with the above prior art process is the use of hazardous thionyl chloride may cause for many inconvenient reactions such as fire or explosion, irritation or toxic fumes in a fire, it produces lower yield and higher impurities. The complexity of the known processes for the preparation of the Canagliflozin and its intermediates are used expensive, corrosive/toxic reagents and drastic reactions conditions. The above process reagents or conditions are difficult to apply for industrially scale up.
Hence, there is consequently a need for a novel method for the preparation of Canagliflozin and its intermediates. The above disadvantages are overcome by the present invention provides an industrial viable process for the preparation of Canagliflozin (I) and this method is simple and efficient, wide-ranging sources of raw materials, synthetic route is simple, easy operation, mild reaction conditions, the desired reaction time is short, high yield with low synthesis cost, easy post-processing, eco-friendly and suitable for industrial production.